SECP files criminal complaint against seven individuals

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has filed a criminal complaint in the Sessions Court Karachi against seven individuals, ie, Ghulam Rasool, Sohail Amin Ghazi, Ali Raza, Imran Khatri, Ehtisham Rais, Muhammad Noor and Muhammad Fayyaz, all clients of Multiline Securities Limited (MSL) collectively referred to as “Group” for ramping share price of Silver Star Insurance Limited (SSIC) from Rs5 to Rs12/share, a statement said on Friday.  Based on an investigation, the SECP found that the group was indulged in market manipulation by generating artificial volume and placed orders in a suspicious pattern, it added.

Of these orders placed, a large number of orders were cancelled before execution, giving a false impression of active trading. Investigations revealed that these individuals hampered free and fair mechanism of price discovery by influencing demand and supply forces to their benefit. The market manipulation is a criminal offence under Section 133 of the 2015 Securities Act.

Being cognizant of the fact that for smooth capital market operations, free and fair market play is of critical importance, the SECP has ordered multiple investigations to curb such market manipulative schemes, it added.